BJP’s duplicity on ‘freebies’

The complexities of managing state finances in India have come to the forefront once again, with the Bharatiya Janata Party (BJP) and its allies at the Centre facing sharp criticism over their economic policies. On the one hand, Union Finance Minister Nirmala Sitharaman has accused Opposition-led state governments of financial mismanagement, particularly for their reliance on offering unsustainable freebies during elections. These include the Aam Aadmi Party in Delhi and Punjab, Dravida Munnetra Kazhagam in Tamil Nadu and the erstwhile governments of Yuvajana Sramika Rythu Congress Party in Andhra Pradesh and Bharat Rashtra Samiti in Telangana. They have been called out for their inability to balance revenue and expenditure. Sitharaman argues that these states are suffering the consequences of their poor economic decisions, often blaming the Centre for withholding funds, when in fact, their financial troubles stem from imprudent fiscal policies. On the other hand, the ongoing debate over fiscal responsibility is particularly relevant as the BJP-led National Democratic Alliance government at the Centre, which finds itself on the defensive following setbacks in the 2024 Lok Sabha polls, is now strategizing for the upcoming assembly elections. In Maharashtra, a key battleground, the ruling coalition of BJP, the breakaway factions of the Shiv Sena and Nationalist Congress Party has introduced ‘Mukhyamantri Ladki Bahin Yojana’ for women between the ages of 21 and 65 with an annual income of less than Rs. 2.5 lakh a monthly financial assistance of Rs 1,500, promising to increase it to Rs 3,000 if voted to power. Introduced following the tremendous electoral success of a similar scheme of the BJP in Madhya Pradesh, this initiative by Chief Minister Eknath Shinde, has sparked a fresh narrative at a critical time when the alliance faces a tough electoral challenge. However, the fiscal implications of this scheme, two instalments of Rs 3,000 have already been paid, are concerning. With Maharashtra already burdened by a staggering debt of Rs 7.8 lakh crore, the second-highest in India after Tamil Nadu, the introduction of such a costly welfare programme—estimated to cost around Rs 46,000 crore annually—raises questions about the long-term economic stability of the state. The Ladki Bahin scheme, which has already received a strong response from women across the state, further highlights the growing trend of political parties prioritizing short-term electoral gains over sustainable fiscal policies. Interestingly, the scheme has even muted the Opposition’s criticism, with many refraining from attacking the government over this initiative. This is indicative of a broader trend where political parties, driven by the need to secure votes, are increasingly resorting to populist measures that may jeopardize the state’s economic health in the long run. The silence of the Opposition on this matter is telling, as it suggests a shift in priorities where fiscal responsibility is being sidelined in favour of immediate political rewards. This pattern is not new to Maharashtra. In the past, populist measures like farm loan waivers and promises of free electricity have set a precedent for costly electoral promises. For instance, before the 2004 assembly elections, Shiv Sena leader Bal Thackeray promised free electricity for the agricultural sector if the Sena-BJP alliance came to power. The then Congress Chief Minister, Sushil Kumar Shinde, countered this by announcing a similar scheme, which was later reversed by his successor Vilasrao Deshmukh, due to its unsustainability. The Ladki Bahin scheme appears to continue this trend, where the allure of immediate benefits overshadows the need for sound, long-term economic policies. As Maharashtra gears up for the elections, it is likely that other parties will follow suit, making even grander promises that could further strain the state’s finances. This focus on short-term electoral gains at the expense of fiscal discipline could have serious repercussions for Maharashtra’s economic future. Hence, though the Ladki Bahin scheme might offer temporary relief and electoral advantages, it underscores a worrying trend in Indian politics where the long-term fiscal health of a state is being sacrificed for short-term political gains. The silence of the Opposition and the public’s acceptance of such schemes point to a shift in priorities, where immediate political rewards are taking precedence over sustainable economic governance. As the elections approach, it remains to be seen how much this approach will cost Maharashtra in the long run.